Finance - Growing area near TSMC
Surprise, AZ 85387
3bd • 2ba • Built: 2025
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $24,000 | $24,720 | $25,462 | $26,225 | $27,012 | $27,823 | $28,657 | $29,517 | $30,402 | $31,315 |
| Vacancy Losses | ($1,920) | ($1,978) | ($2,037) | ($2,098) | ($2,161) | ($2,226) | ($2,293) | ($2,361) | ($2,432) | ($2,505) |
| Operating Income | $22,080 | $22,742 | $23,425 | $24,127 | $24,851 | $25,597 | $26,365 | $27,156 | $27,970 | $28,809 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,538) | ($1,584) | ($1,632) | ($1,681) | ($1,731) | ($1,783) | ($1,836) | ($1,891) | ($1,948) | ($2,007) |
| Insurance | ($769) | ($792) | ($816) | ($840) | ($865) | ($891) | ($918) | ($946) | ($974) | ($1,003) |
| Management Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($1,788) | ($1,842) | ($1,897) | ($1,954) | ($2,012) | ($2,073) | ($2,135) | ($2,199) | ($2,265) | ($2,333) |
| Maintenance | ($480) | ($494) | ($509) | ($525) | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,575) | ($4,712) | ($4,854) | ($4,999) | ($5,149) | ($5,304) | ($5,463) | ($5,627) | ($5,795) | ($5,969) |
| Income Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Net Operating Income | $17,505 | $18,030 | $18,571 | $19,128 | $19,702 | $20,293 | $20,902 | $21,529 | $22,175 | $22,840 |
| - Mortgage Payments | ($17,494) | ($17,494) | ($17,494) | ($17,494) | ($17,494) | ($17,494) | ($17,494) | ($17,494) | ($17,494) | ($17,494) |
| = Cash Flow | $11 | $536 | $1,077 | $1,634 | $2,208 | $2,799 | $3,408 | $4,035 | $4,681 | $5,346 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $23,069 | $24,454 | $25,921 | $27,476 | $29,125 | $30,872 | $32,724 | $34,688 | $36,769 | $38,975 |
| = Gross Equity Income | $23,080 | $24,989 | $26,998 | $29,110 | $31,332 | $33,671 | $36,132 | $38,723 | $41,450 | $44,321 |
| Capitalization Rate | 4.3% | 4.2% | 4.1% | 3.9% | 3.8% | 3.7% | 3.6% | 3.5% | 3.4% | 3.3% |
| Cash on Cash Return | 0.0% | 0.4% | 0.9% | 1.3% | 1.8% | 2.2% | 2.7% | 3.2% | 3.8% | 4.3% |
| Return on Equity | 16.7% | 15.3% | 14.3% | 13.5% | 12.8% | 12.2% | 11.7% | 11.3% | 10.9% | 10.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $407,559 | $432,013 | $457,934 | $485,410 | $514,534 | $545,406 | $578,131 | $612,819 | $649,588 | $688,563 |
| - Loan Balance | ($269,143) | ($269,143) | ($269,143) | ($269,143) | ($269,143) | ($269,143) | ($269,143) | ($269,143) | ($269,143) | ($269,143) |
| = Equity | $138,416 | $162,870 | $188,791 | $216,267 | $245,391 | $276,263 | $308,988 | $343,676 | $380,445 | $419,420 |
| Loan-to-Value Ratio | 66.0% | 62.3% | 58.8% | 55.4% | 52.3% | 49.3% | 46.6% | 43.9% | 41.4% | 39.1% |
| Potential Cash-Out Refi | $97,660 | $119,669 | $142,997 | $167,726 | $193,938 | $221,723 | $251,175 | $282,394 | $315,486 | $350,564 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $138,416 | $162,870 | $188,791 | $216,267 | $245,391 | $276,263 | $308,988 | $343,676 | $380,445 | $419,420 |
| - Closing Costs | ($28,529) | ($30,241) | ($32,055) | ($33,979) | ($36,017) | ($38,178) | ($40,469) | ($42,897) | ($45,471) | ($48,199) |
| = Proceeds After Sale | $109,887 | $132,629 | $156,735 | $182,288 | $209,374 | $238,085 | $268,519 | $300,778 | $334,974 | $371,221 |
| + Cumulative Cash Flow | $11 | $547 | $1,623 | $3,257 | $5,465 | $8,264 | $11,672 | $15,706 | $20,387 | $25,733 |
| - Approximate Cash Invested | ($124,575) | ($124,575) | ($124,575) | ($124,575) | ($124,575) | ($124,575) | ($124,575) | ($124,575) | ($124,575) | ($124,575) |
| = Net Profit | ($14,677) | $8,601 | $33,784 | $60,971 | $90,264 | $121,774 | $155,616 | $191,910 | $230,786 | $272,379 |
| Internal Rate of Return | -11.8% | 3.4% | 8.3% | 10.5% | 11.6% | 12.1% | 12.4% | 12.6% | 12.6% | 12.6% |
| Return on Investment | -11.8% | 6.9% | 27.1% | 48.9% | 72.5% | 97.8% | 124.9% | 154.1% | 185.3% | 218.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.